CPM
CPM means Cost Per Thousand.
CPC
CPC means Cost Per Click. This is how much you would pay the ad-network or website every time a visitor clicks on your banner. CPC rates can be as high as $3 per click or as little as 5 cents per click.
CPA means Cost Per Action. The Affiliate Network tracks all this using their system and code merchants and publishers are required to place on their website.
CTR
CTR is Click Through Rate. This is the percentage rate at which people click on your ad banner.
Similarly, if your ad banner is seen 100,000 times and in the same time period it is clicked 2000 times - then your banner CTR is 2% or .02 .
(Number of Clicks / Number of impressions) x 100
CPM, CPC or CPA ... which is best for my ad campaign?
Your CTR will help you decide your campaign type - CPM or CPC ? If your CTR is high, you should go in for a CPM, if its low you should go in for a CPC.
And, you need to decide if you should go in for CPM or CPC ?
.002 x 1,000,000 = 2000 clicks.
CPM or CPC.
I paid $5000 for 1,000,000 ads at 5% CTR
= .05 (5%) x 1,000,000 = 50,000 clicks!
Now, if I had bought on a click basis, then at the CPC rate of (50cents) I will pay
So, I am better of buying with a CPM system for this banner ad campaign
Both Google and Yahoo are leaning towards taking their CPC system into a more fair and measurable CPA system. Selling ad-space on your website - how much can you charge?
If you have high traffic you may approach ad-networks, and they will serve out the ads for your website. Ad-networks pay you based on CPM or CPC, depending on what their client (the advertiser) opt for. There are many mid sized networks, like Advertising , fastclick , ValueClick (only CPC, owned partially by DoubleClick) and even smaller ad networks like, burstnet .
Banner Management Software
What is CPM, CPC, CPA and CTR ?
The CPC exam is hard on purpose.It examines a candidates medical coding, anatomy and medical terminology skills in a strict test environment, asking the candidate to answer 150 multiple choice questions related to the aforementioned topic areas in just under 6 hours.6 hours is a long time to be sitting, answering exam questions, even if they are multiple choice questions.